Sphere 3D(US:ANY)2025-05-14 20:24Financial Performance - For Q1 2025, Sphere 3D reported revenues of $2.8 million, a decrease of 59.4% from $6.9 million in Q1 2024, primarily due to 22% of mining machines being taken offline[103]. - The direct cost of revenues for Q1 2025 was $2.2 million, down 48.8% from $4.3 million in Q1 2024, attributed to lower hosting fees and the transition to newer generation machines[104]. - The company experienced a loss on disposal of property and equipment of $0.8 million in Q1 2025, compared to nil in Q1 2024[107]. - General and administrative expenses decreased to $3.2 million in Q1 2025 from $3.5 million in Q1 2024, primarily due to reduced share-based compensation and employee-related expenses[105]. - For the three months ended March 31, 2025, the company reported a net cash used in operating activities of $4.078 million, compared to $58,000 in the same period of 2024[116]. - The company experienced a net loss of $8.8 million during the first three months of 2025, which was offset by $6.3 million in non-cash items[116]. Mining Operations - Sphere 3D mined 30.5 Bitcoin in Q1 2025, a 5.0% decrease from 32.1 Bitcoin in Q4 2024, due to strategic changes in operations[97]. - As of March 31, 2025, Sphere 3D owned approximately 13,000 miners, with 6,400 in service and a total hashrate capacity of 0.82 EH/s[97]. - The company anticipates achieving approximately 1.5 EH/s of total hashrate in operation during 2025 based on existing operations and expected miner deployments[97]. - The company plans to lower mining costs and refresh its mining fleet to enhance efficiency[113]. Cash and Liquidity - As of March 31, 2025, Sphere 3D had cash and cash equivalents of $2.8 million, down from $5.4 million at December 31, 2024[110]. - Cash on hand may not be sufficient for the company to continue operations within 12 months if additional funding is not raised[113]. - The company received $2.1 million from the sale of Bitcoin during the first three months of 2025[117]. - The company provided $0.1 million of net proceeds from financing activities in the first three months of 2025[118]. Future Outlook and Funding - Sphere 3D entered into an At-the-Market Offering Program with a potential aggregate offering price of up to $8.0 million for working capital and corporate strategy purposes[111]. - The company expects working capital needs to increase in the future as operations expand[113]. - Significant risks include potential shortfalls in projected mining earnings and increases in operating costs, which could impact funding access[114]. Share Issuance - The company issued 210,448 common shares for approximately $0.1 million net proceeds under the AGP Agreement[112]. Other Information - As of March 31, 2025, the company had no standby letters of credit outstanding[119]. - The fair value of Bitcoin held by Sphere 3D as of March 31, 2025, was approximately $1.9 million[98].